Q3 You are an industry analyst that specializes in an industry where the market inverse demand is P= 200 - 4QThe external marginal cost of producing the product is MCExternal 8Q, and the internal cost is MCInternal =12 Q.Instructions: Enter your responses rounded to the nearest two decimal places.a. What is the socially efficient level of output?unitsb. Given these costs and market demand, how much output would a competitive industry produce?unitsc. Given these costs and market demand, how much output would a monopolist produce?unitsd. Which of the following are actions the government could take to induce firms in this industry to produce thesocially efficient level of output.Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s).click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.Pollution taxesPollution permitsNonrival consumption

Answered: Image /qna-images/answer/af3fe010-9cd6-4fd0-b057-c7afebaf608a.jpg

Answered: Pollution taxes

Business

Economics

Pollution taxes

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

You are an industry analyst that specializes in an industry where the market inverse demand is P= 200 - 4Q
The external marginal cost of producing the product is MCExternal 8Q, and the internal cost is MCInternal =
12 Q.
Instructions: Enter your responses rounded to the nearest two decimal places.
a. What is the socially efficient level of output?
units
b. Given these costs and market demand, how much output would a competitive industry produce?
units
c. Given these costs and market demand, how much output would a monopolist produce?
units
d. Which of the following are actions the government could take to induce firms in this industry to produce the
socially efficient level of output.
Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s).
click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.
Pollution taxes
Pollution permits
Nonrival consumption

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